1333274--3/2/2009--MERCER_INTERNATIONAL

related topics

{condition, economic, financial}

{cost, regulation, environmental}

{cost, contract, operation}

{personnel, key, retain}

{operation, natural, condition}

{operation, international, foreign}

{stock, price, share}

{competitive, industry, competition}

{stock, price, operating}

{loss, insurance, financial}

{debt, indebtedness, cash}

{cost, operation, labor}

Our level of indebtedness could negatively impact our financial condition and results of operations. The global economic crisis could adversely affect our business and financial results and have a material adverse effect on our liquidity and capital resources. Prolonged depressed pulp prices may cause us to take production downtime at our mills. In the current economic conditions and weak pulp price and demand environment, there can be no assurance that we will be able to generate sufficient cash flows to service, repay or refinance debt. Our shares may be delisted from the NASDAQ Global Market if the closing price for our shares is not maintained at $1.00 per share or higher. Cyclical fluctuations in the price and supply of our raw materials could adversely affect our business. We operate in highly competitive markets. We are exposed to currency exchange rate and interest rate fluctuations. Increases in our capital expenditures or maintenance costs could have a material adverse effect on our cash flow and our ability to satisfy our debt obligations. We use derivatives to manage certain risk which has caused significant fluctuations in our operating results. We are subject to extensive environmental regulation and we could have environmental liabilities at our facilities. We are subject to risks related to our employees. The Celgar Energy Project may not generate the results or benefits we expect. We rely on German federal and state government grants and guarantees. The EU ETS and Germany s Renewable Energy Act. We are dependent on key personnel. We may experience material disruptions to our production. We may incur losses as a result of unforeseen or catastrophic events, including the emergence of a pandemic, terrorist attacks or natural disasters. Our insurance coverage may not be adequate.

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1333274--3/2/2009--MERCER_INTERNATIONAL_INC.